Ministry identifies 5 violations which lead to cancellation of classification of SMEs in UAE

Abdul Rahman Saeed, Staff Reporter

The Ministry of Human Resources and Emiratisation (MoHRE) has identified five cases under which the classification of small and medium enterprises (SMEs) will be cancelled and they will be reclassified.

These include the SME’s failure to pay workers’ wages in accordance with the ministerial decision no. 43 for 2022 regarding wages protection system, allowing its workers to work for others or employing workers of other SMEs without a licence from the MOHRE.

The classification of an SME will be also cancelled when the SME’s relationship with its workers is proved to be a sham, when an SME is sold or its ownership transferred to another person without notifying the Youth Enterprise Support institutions or the MoHRE or when the SME is proved to be managed by someone other than its owner or a non-Emirati manager, in case it has more than 50 workers.

The MoHRE pointed out that Youth Enterprise Support institutions are institutions, programmes, funds, or other legal entities licensed by the UAE competent authorities that aim to support SMEs managed by Emiratis.